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Pharmaceutical major Dr Reddy’s has posted a net profit of ₹1,188 crore in the first quarter ended June 30, 2022, as against ₹571 crore in the same quarter, showing a growth of over 108 per cent. During the quarter, it clocked revenues of ₹5,215 crore as against ₹4,919 crore in the same quarter last year, showing a growth of 6 per cent.
Addressing a press conference on Thursday, Dr Reddy’s Chief Executive Officer Erez Israeli said the company’s would tap newer opportunities through its initiative Horizon-2. The new opportunities would include end-to-end disease management offerings and biologicals. These activities will be synergitic with existing business.
“This is going to be very important for the company in the years to come. Post 2027 till 2040, most of the off-patent products will be biologicals. This is going to be an important segment for us. We will be targeting it,” he said.
Sputnik as booster
He said the company was in the final stages of finalising the trials in India to qualify Sputink as a booster for other vaccines the country. “Once the trials are completed and good results achieved, we can apply for a licence in India and then look at other countries,” Israeli said.
“Our underlying business revenues adjusted for Covid products contribution during last year have grown well. The profits were aided by a few non-recurring incomes, offsetting the near term headwinds,” Dr Reddy’s Co-Chairman and Managing Director GV Prasad said.
“We continue to improve the health of our core businesses through productivity improvement and robust product pipelines,” he said.
Revenues from India
The contribution from India operations grew by 26 per cent to ₹1,330 crore, largely driven by divestment of a few non-core brands, and revenue contribution from the products acquired or licensed from Novartis and new products contribution.
The company spent ₹430 crore on research and development (R&D), which is 8.3 per cent in the revenues for the quarter. The North American market contributed ₹1,780 crore, posting a growth of two per cent.
“We launched 7 new products as part of the plan to launch 25 new products in the market,” Dr Reddy’s Chief Financial Officer Parag Agarwal said.
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